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Motivation for disclosure of corporate social responsibility: evidence from banking industry in Indonesia

Author

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  • Atang Hermawan

    (Pasundan University, Indonesia)

  • Ardi Gunardi

    (Pasundan University, Indonesia)

Abstract

This research aims to investigate determining factors that influence corporate social responsibility disclosure (CSR disclosure) by examining the effects of company size, profitability, leverage, public ownership, board of commissioner, independent commissioner, and the size of the audit committee. For this study, the samples are banking firms that are listed in Indonesian Stock Exchange between the year 2010-2014. The data were extracted from audited financial reports, and sustainability reports (if available). Quantitative using secondary data. Multiple regression is the analysis performed. Results from this study showed that profitability, public ownership, board of commissioner, and independent commissioner has a positive impact towards corporate social responsibility disclosure, whilst leverage and audit committee negatively affected the company. Furthermore, there was not enough evidence to prove that the size of the company is affecting companies to disclose their corporate social responsibility activities.

Suggested Citation

  • Atang Hermawan & Ardi Gunardi, 2019. "Motivation for disclosure of corporate social responsibility: evidence from banking industry in Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1297-1306, March.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1297-1306
    DOI: 10.9770/jesi.2019.6.3(17)
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    References listed on IDEAS

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    1. Dulacha Barako & Alistair Brown, 2008. "Corporate social reporting and board representation: evidence from the Kenyan banking sector," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(4), pages 309-324, November.
    2. Cuadrado-Ballesteros, Beatriz & Rodríguez-Ariza, Lázaro & García-Sánchez, Isabel-María, 2015. "The role of independent directors at family firms in relation to corporate social responsibility disclosures," International Business Review, Elsevier, vol. 24(5), pages 890-901.
    3. Ardi Gunardi & Erie Febrian & Aldrin Herwany, 2016. "The implication of firm-specific characteristics on disclosure: the case of Indonesia," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 9(4), pages 379-387.
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    Cited by:

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    2. Armenia Androniceanu, 2019. "Social Responsibility, an Essential Strategic Option for a Sustainable Development in the Field of Bio-Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 503-503, August.
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    More about this item

    Keywords

    corporate social responsibility disclosure; company characteristic; corporate governance; banking firms;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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